Energy Stocks Can Rally

A number of technical indicators bode well for energy shares, including Warren Buffett's new holding, Exxon Mobil.

Last week, the Select Sector SPDR Energy (ticker: XLE) broke out to the upside. Although some subsectors within energy are not quite as strong, this technical breakout bodes well for the sector as a whole.

The widely followed XLE exchange-traded fund was in a four-week pause until rallying Nov. 14 (see Chart 1). It is now less than 4% below its...